Sub-Mission on Agricultural Mechanization Scheme Overview
The Sub-Mission on Agricultural Mechanization (SMAM) is a Centrally Sponsored Scheme under the Rashtriya Krishi Vikas Yojana (RKVY) launched in 2014-15 to enhance agricultural productivity through mechanization. The scheme aims to "reach the unreached" by extending benefits to small and marginal farmers, women, Scheduled Castes (SC), Scheduled Tribes (ST), Farmer-Producer Organizations (FPOs), Self-Help Groups (SHGs), and rural entrepreneurs. It focuses on reducing regional disparities, particularly in underserved and North-Eastern States.
Financial Achievements and Distribution
Since its inception, SMAM has provided central assistance of ₹9,404.47 crore, supporting the distribution of 21.61 lakh agricultural machines to individual farmers across India. The scheme has established 27,554 Custom Hiring Centers, 646 Hi-tech Hubs, and 25,608 Farm Machinery Banks. The number of beneficiaries for individual farm machinery ownership increased from 2.07 lakh in 2020-21 to 2.32 lakh in 2024-25, reflecting expanded scheme coverage.
Funding Structure and Subsidy Patterns
The scheme follows a differentiated cost-sharing arrangement: 60:40 Central-State funding for most states, 90:10 for North-Eastern and Himalayan states, and 100% Central funding for Union Territories. Financial assistance includes 40% subsidy on machine cost for general beneficiaries and 50% for SC/ST farmers, small and marginal farmers, and beneficiaries in North-Eastern states. Small and marginal farmers receive Rs 2,000 per hectare for mechanized services through CHCs, SHGs, and FPOs.
Drone Technology Adoption
SMAM has promoted agricultural drone technology with ₹52.50 crore financial support. From 2023-24 to 2025-26, ICAR in collaboration with State Agricultural Universities and KVKs conducted 40,928 Kisan Drone demonstrations covering 40,918 hectares for nutrient, fertilizer, and agro-chemical applications. Eligible institutions receive 100% financial support up to ₹10 lakh per drone, while FPOs get 75% grant support. Service model agencies receive ₹6,000 per hectare contingency expenditure.
Institutional Support Mechanisms
The scheme establishes Custom Hiring Centres (CHCs) comprising farm machinery for hire by farmers, with 40% financial assistance for projects up to ₹250 lakh. Farm Machinery Banks receive 80% support for projects up to ₹30 lakh. For SHGs, FPOs, and local institutions, 80-90% financial support is provided for acquiring agricultural machinery. North-Eastern states receive enhanced support including up to 100% subsidy for small machinery and 95% support for Farm Machinery Banks.
Inclusive Focus and Special Provisions
SMAM earmarks 30% of total funds for women farmers to enhance their access to agricultural machinery. The scheme emphasizes performance testing and certification of agricultural machinery, targeted IEC activities, and addresses structural constraints like small landholdings through affordable rental services. It strengthens post-harvest infrastructure for processing, storage, value addition, and crop residue management.